Cincinnati Bell 2013 Annual Report Download - page 77

ANNEX A
Cincinnati Bell Inc.
Reconciliation of GAAP and Non-GAAP Financial Measures
The Company reports its financial results in accordance with accounting principles generally accepted in the
United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-
GAAP financial measures provide users with additional meaningful financial information that should be
considered when assessing our ongoing performance. Management uses these non-GAAP financial measures in
making financial, operating and planning decisions and in evaluating the Company’s performance. Non-GAAP
financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results
prepared in accordance with GAAP. Management also believes non-GAAP financial measures should not be
construed as being more important than comparable GAAP measures.
For additional details regarding the reconciliation of GAAP and non-GAAP financial measures below, see
the Company’s Current Reports on Form 8-K filed with the SEC on February 20, 2014 and February 27, 2013.
This information is also available in the “Investor Relations” section of the Company’s website,
www.cincinnatibell.com.
Twelve Months Ended
December 31,
(dollars in millions) 2013 2012
Net (Loss) Income (GAAP) ................................................ $(54.7) $ 11.2
Add:
Income tax (benefit) expense ............................................ (2.5) 24.7
Interest expense ...................................................... 182.0 218.9
Loss on extinguishment of debt .......................................... 29.6 13.6
Loss from CyrusOne equity method investment ............................. 10.7 —
Other (income) expense, net ............................................ (1.3) 1.7
Operating Income (GAAP) ................................................ $163.8 $270.1
Add:
Depreciation and amortization ........................................... 169.6 217.4
Transaction-related compensation ........................................ 42.6 —
Restructuring charges ................................................. 13.7 3.4
Loss (gain) on sale or disposal of assets ................................... 2.4 (1.6)
Transaction costs ..................................................... 1.6 6.3
Asset impairments .................................................... — 14.2
Legal claim costs ..................................................... — 0.4
Curtailment gain ..................................................... (0.6) —
Pension and other retirement plan expenses ................................ 22.5 24.4
Adjusted EBITDA (Non-GAAP) ........................................... $415.6 $534.6
Less: CyrusOne Adjusted EBITDA (Non-GAAP) ............................... 8.4 115.0
Adjusted EBITDA, excluding CyrusOne (Non-GAAP) ......................... $407.2 $419.6
A-1
Proxy Statement